President Donald Trump is shifting his strategy to end the war with Iran, turning to sanctions as a means to apply financial pressure on the country. The Trump administration believes that months of bombing have pushed Iran’s economy to a breaking point, and that additional sanctions will force the country’s leadership to cave to demands to end its nuclear program and fully reopen the Strait of Hormuz to oil and natural gas tankers.
Sanctions as a Tool
The use of sanctions as a tool in the war with Iran is not new, but the Trump administration is hoping that this latest round will be more effective. The president has said that Iran is seeking compensation as part of any peace talks, and he now intends to demand the same for the U.S. side. This pivot comes as U.S. stockpiles of key weapons have dwindled and as stop-start talks seem to have stalled.
The Trump administration has been engaged in what it calls ‘Operation Economic Fury’ against Iran since April 16. Treasury Secretary Scott Bessent has called this component the ‘financial equivalent’ of a bombing campaign, as countries that buy oil from Iran or bank with it could be sanctioned. However, experts warn that the sanctions may not have the desired effect, as they are unable to bite as quickly as the impact of the largely shuttered strait.
Iran’s Response
Iran does not appear to be publicly intimidated by the prospect of more financial sanctions. Esmaeil Baqaei, spokesman for Iran’s Foreign Ministry, said that the U.S. has a ‘bad habit’ of resorting to sanctions when diplomacy fails. The Iranian economy has suffered gravely due to the war, with the International Monetary Fund estimating that the overall economy shrinks by 5.4% and the Iranian government recently reporting an annual inflation rate of 88.6%.
The U.S. economy, on the other hand, has continued to grow, but inflation is elevated and borrowing costs have risen in ways that have hurt Trump’s popularity and led to disapproval of the Iran war. A senior U.S. official said that the U.S. military has set back Iran’s ability to produce, sell, and ship oil and other energy resources, and that the administration sees the naval blockade of the strait and sanctions as effective.
Original reporting: KTBS 3 (Shreveport) — read the source article.
